Becoming a Talent Magnet:
How to Attract and Retain Great Employees
By David Lee
Originally published in
Insights: The Journal of the Northeast HR Association
Although most
business owners and CEOs say they realize the critical role attracting and retaining
high quality employees plays in their company’s
success, a recent survey by Kepner-Tregoe of
When management does address this issue,
they often focus their attraction and retention efforts on financial factors -
competitive pay and a good benefits package. Although important, these are not
enough to attract and retain the best of the best. In fact, the Kepner-Tregoe study revealed that 40% of employees felt
that increased salaries and financial rewards were ineffective in reducing
turnover. In Fortune magazine’s “100 Best Companies to Work For” survey, not a
single employee mentioned money as a reason why they loved the place they
worked. If competitive salary and a generous compensation package aren’t
enough, what does make a company the kind of place that draws great people to
it, and makes them want to stay? In short, what makes a company a Talent Magnet.
Talent Magnet organizations attract and
retain great employees because they satisfy the key human needs that influence
performance and loyalty. They satisfy these needs by the way they are lead and
managed. In this article, we will identify several core human needs which
affect how people feel about a company, and how Talent Magnet organizations
address these. The following list is not meant to be exhaustive, but rather a
place for HR managers to begin the conversation with their fellow managers
about how they can co-create a Talent Magnet Organization.
What Are People Looking For?
Pride In Where
They Work and What They Do
The type of person employers want most -
those who do an outstanding job and take pride in their work - want to be proud
of the company they work for. Companies that produce mediocre products or
provide poor service have difficulty attracting and retaining excellent workers
- regardless of how generous their benefits and compensation package.
Conversely, companies that offer the highest quality products and service are
far more likely to attract and retain the “best of the best.” Employee pride
also comes from observing management making decisions that show a clear
understanding of what is going on “in the trenches.” When management tolerates
shoddy decision-making and mediocre management, pride is damaged. When an
organization embodies excellence, it creates a self-reinforcing, winning
success cycle - a great company that attracts great people who make it possible
for the company to remain great.
Meaning and Purpose
Meaningful work brings workers alive in a
way a generous benefits package cannot. In the words of Studs Terkel, author of Working, employees “search, too, for
daily meaning as well as daily bread, for recognition as well as cash, for
astonishment rather than torpor; in short, for a sort of life rather than a
Monday through Friday sort of dying.”
How do Talent Magnet organizations address
this issue? First, they have, and embody, a mission and a vision that captures
the hearts and souls of their workforce. Second, they continuously communicate
their mission and vision to their people. Third, they communicate the important
role each employee has in making the vision a reality. Fourth, they give
employees the tools and freedom to make a difference in the company. Fifth,
they let employees hear “the voice of the customer,” to help them stay
connected to the bigger picture. Medtronics, a
medical products company from
Appreciation
Showing genuine appreciation is simple,
inexpensive, and tremendously effective. Research shows that appreciation is
one of the strongest, if not the strongest, employee motivator. How do you show
appreciation? It can be as simple as saying "Thanks for doing a great
job," when handing out paychecks, as does Meredith Burgess of Burgess
Advertising, a
Doug Levin, CEO of Fresh Samantha, the
natural fruit juice phenomenon from Maine, solicits information from managers
every week, about who has done a great job, gone the extra mile, or has done
some other outstanding “Juicehead” action, and sends them “Thank you” notes. At
Oakhurst Dairy, of
Opportunities To
Learn and Grow
When work allows employees to use their
minds, acquire new skills, and face situations that invite them to grow, they
come alive. Talent Magnet organizations address this fundamental need by
providing their employees with ongoing learning opportunities. They do this not
only through formal training, but through cross-training, and assigning
employees projects and responsibilities that cause them to stretch. Even for
production work that might not be considered “knowledge work,” innovative
companies like Hussey Seating of South
While management at non-Talent Magnet
organizations view training as a luxury they either can’t afford, or don’t have
the time for, management at Talent Magnet organizations see it as investment in
attracting, retaining, and growing a world class workforce.
Respect
Managers at Talent Magnet organizations
realize that every management action, response, or communication conveys a
message about how much management respects - or doesn’t respect - its
employees. They realize that simple demonstrations of respect, like not
requiring employees to ask permission for every minor decision, or saying
“Would you...” rather than “You should...” or “You need to...,” when assigning
tasks, makes a big difference in how employees feel about their employer.
Management shows respect by soliciting input from people on the front-line.
When Keane, Inc.’s co-presidents Brian and John, Keane, Jr. go out into the
field and ask their people in the trenches “What do you recommend we do about
this situation?” they send a clear message of personal and professional
respect, and reinforce Keane’s reputation as a great place to work. Asking for
employee’s input on how they feel about the organization and the way they are
managed - and then responding to the feedback - is another sign of respect.
Respect is also shown by recognizing that
employees have a life outside of work. It’s demonstrated by not piling on so
much that work employees don’t have a life, and not requiring them to beg for
flexible scheduling so they can meet their other life responsibilities. At
Tom’s of
This Isn’t Rocket Science.... So How Come
So Few Companies Do These Things?
These needs are so basic; so obvious; yet
so often not met by companies. HR Managers need to be aware of what prevent
companies from recognizing and addressing these needs, if they are going to
help their organization become a Talent Magnet.
Time Pressure - Managers are often so time pressured
and so focused on putting out fires, they incorrectly believe they don’t have
time to work on the “soft issues” related to the human side of business.
Obviously, a lack of understanding about the impact these “soft issues” have on
the bottom line contributes to their being put on the “nice to do if we had
more time” list.
Lack of Awareness - When people are promoted to the
managerial level because of their technical prowess, but lack effective
interpersonal skills or an understanding of human nature, they are more likely
to dismiss the human side of attraction and retention as “touchy feely” or just
plain irrelevant.
Arrogance - Many companies show the same arrogance
toward their employees as they do to their customers. They assume they know
better than their customers and their employees about what would satisfy them,
and don’t bother to find out if they’re correct. If they do ask, and the feedback
isn’t positive, they dismiss it as irrational and impertinent. Even when their
workforce is hemorrhaging, they adamantly maintain that employee requests are
inappropriate and impossible to satisfy.
“Quick Fixitis” - If managers can order an Employee Appreciation
Day or an Employee of the Month award, they can remove “Implement Attraction
and Retention Program” from their “to do” list. The feeling of mastery that
accompanies the completion of a task is so intrinsically satisfying -
especially to a harried manager whose work is never done - that it blinds us to
whether the solution is effective or not.
The unfortunate truth is that quick fixes
and gimmicky approaches to attraction and retention aren’t effective; they can
even have the opposite effect. Because people are very sensitive to
insincerity, workers are quick to notice a disconnect
between staged events and corporate proclamations, and the day to day treatment
they receive by their manager and the company as a whole.
HR Managers Can Help Their Organization
Become a Talent Magnet by Helping Management...
...Recognize the Importance of Listening
To The Voice of THEIR Customer - The Employees
Assuming customers are happy without
asking them if you’re right, is a surefire way to lose customers - and
employees - left and right. Talent Magnet organizations don’t assume that what
they are doing is working; they are constantly engaging in conversations with
their workforce through employee satisfaction surveys, anonymous suggestion
boxes, company-wide meetings, focus groups, and informal conversations.
Importantly, they also work at creating a culture where honesty and openness is
supported, so employees feel safe enough to voice their concerns.
...Identify From Their Own Experience What
Works, And Doesn’t Work
When people compare their own experiences
at positive and negative workplaces or with their best and worst boss, they
find it difficult to deny the huge impact organizational culture and management
practices have on performance and loyalty. HR Managers can help management
identify those management practices and organizational qualities that lead to
high performance and employee loyalty. They can do this by facilitating
discussions among groups of managers, and then using this information, along with
an employee survey, to assess what needs to be addressed in the organization.
...Recognize The
Importance of Management Development
According to Quinton Studer,
president of Baptist Hospital, Inc., of
...Ask Themselves Tough Questions
This is perhaps the most difficult step to
take. Creating a Talent Magnet Organization requires courageous
self-examination by management at all levels about how well they lead and about
the kind of company they have created. This process of engaging in
self-examination, and engaging employees in honest conversation about how well
the company is run, can yield critical information about what steps need to be
taken to transform an organization into a Talent Magnet. See the side bar for a
few questions to get the process started.
Conclusion
It takes more than a generous benefits
package and competitive salaries to attract and retain talented employees. It
takes addressing the fundamental need people have for Pride, Meaning and
Purpose, Appreciation, Opportunities To Learn and
Grow, and Respect. Leaders at Talent Magnet organizations realize this, and
continuously strive to address these fundamental human needs. By listening to
the voice of their customer - their employees - and honestly engaging in
self-examination, they can create an organization that is a magnet for great
employees.
Is Your Organization a Talent Magnet?
The following questions can help
management begin the process of exploring if they are doing the things that
create a Talent Magnet organization. Just as in customer service research, to
effectively answer these questions requires management soliciting feedback from
its customer - the employee. Without their input, all answers are merely
conjecture.
Some Questions to Ask:
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by David Lee
About the
Author: David Lee is a consultant, speaker, and executive coach.
The founder of HumanNature@Work, he has worked with
organizations and presented at conferences throughout
For More Information:
David Lee, President
HumanNature@Work
P.O. Box 430
Bar Mills, Maine 04004
Tel: 207-929-3344
E-mail: info@HumanNatureAtWork.com